Covington, Columbus, and Black Hills Railroad

After the discovery of gold in the Black
Hills, a rush occurred from Sioux City toward the northwest,
leading some Sioux City capitalists to propose a rail line over
this route. In 1875 they organized the Covington, Columbus, and
Black Hills Railroad. It was planned to start at Covington in
Dakota County and build through Dixon, Cedar, and into Knox County,
where it would connect with a Union Pacific branch coming northwest
from Columbus, and then push on to the Black Hills. Citizens
of the counties involved, anxious for a railroad, voted bonds.
For example, Dixon County voted $87,000 with the stipulation
that when the road was built to a given point, the builders were
to receive $20,000, and when it had been built three miles into
Cedar County (the next county beyond) and trains were running,
the remaining bonds would be forthcoming.

Similar propositions were made to each
county to the west through which the proposed line would run,
and in each, bonds carried easily. By September 4, 1876, the
road was completed, and trains were running between Covington
and Ponca. For a time, the undertaking seemed successful, and
people dwelt on the prospects of prosperity which the line was
certain to bring.

Before long, however, a major disadvantage
of the road became apparent. The tracks had a three-foot gauge,
making the Covington, Columbus and Black Hills Railroad less
useful than a standard-gauge road. It was charged that sending
cattle, grain, hogs, or other freight by narrow gauge and changing
to broad gauge at Covington or Sioux City was as expensive as
hauling by wagon to the standard-gauge railroad terminal.

In the spring of 1877 when the railroad
continued grading west of Ponca, a crowd gathered at St. Helena,
seized the bonds (amounting to $150,000), and burned them. Knox
County people did likewise. A lawsuit instituted by the railroad
climbed the ladder of the courts, and the United States Supreme
Court finally decided in favor of the county. The railway was
ultimately sold to the Chicago, St. Paul, Minneapolis, and Omaha
Railroad, which converted it to standard gauge.